Indonesia's Economy to Grow 5.3 Percent: World Bank

   •    12 April 2018 17:34 WIB
indonesia economy
Indonesia's Economy to Grow 5.3 Percent: World Bank
World Bank has predicted that Indonesia's economy would grow 5.3 percent this year (Photo: Antara).

Jakarta: World Bank has predicted that Indonesia's economy would grow 5.3 percent this year, more conservative than 5.4 percent growth target set in the state budget.
"We predict Indonesia's economy would grow 5.3 percent up from 5.1 percent in 2017," World Bank's senior economist Derek Chen said here on Thursday.
Chen  said investment and household consumption would be the main the growth drivers of the country's economy, adding the regional elections would increase household consumption this year.
"Investment is very strong, and we see household consumption would grow slightly as a result of the elections," he said.
He said the regional election in 2019 and the legislative and  presidential elections in 2019, would not pose a bottleneck for economic activities.
After the elections, investment would grow faster with political uncertainties expected to begin to recede, he said.
"Perhaps now investors are awaiting what would happen in 2018 and 2019  and it is believed there would not be much of a shock. Investment, therefore, would flow in again. Such would happen not only in Indonesia, but other countries would also experience the cycle," he said.
In the report of "World Bank East Asia  and Pacific Economic Update of April 2018 edition: Enhancing Potential" released on Thursday, the developing economies in East Asia  and Pacific  are predicted to remain strong with a growth of 6.3 percent in 2018.
The prospects of faster global recovery  and strong domestic demand would support the positive projection, but the risk that come with stability and sustainable growth would need serious addressing, the report said.
The World Bank underlines that even with good prospects the policy makers in this region are advised to identify and cope with the inherent challenges.
Tighter monetary policy  and larger fiscal buffer would be needed in facing short term risks related to rise in interest rates that would grow faster than expected in advanced economies and possible escalation tensions in international trade, it said.
The World Bank said in order to boost long term growth, increasing public and private investment, growing productivity  and improvement of human resource quality would be the key factors. (Antara)